FORESTRY RESOURCES AND BIODIVERSITY

7.7 AGRICULTURAL FINANCE

Policy Issue 1: Improving financing of agriculture

Policy statements: The Government will:

1. 
   Establish an agriculture fund.
   
2. 
   Facilitate increased availability of funds for onward lending to farmers by requiring that a certain proportion of bank lending be earmarked for lending to agriculture;
   
3. 
   Reduce cost of lending to target groups of farmers through interest rate subsidies payable to banks;
   
4. 
   Operationalise the warehouse receipt system;
   
5. 
   Guarantee agro bills, bonds and other instruments used to raise funds for agriculture; and
   
6. 
   Negotiate and guarantee international lines of credit for the benefit of farmers and agro-industrial firms.
   

Policy Issue 2: Increased contract farming to enhance access to inputs and output markets

Policy objective:An increase in the number of farmers benefiting from contract farming arrangements.

Policy statements: The Government will:

1. 
   Facilitate the creation of a regulatory environment for mutually beneficial contract farming arrangements; and
   
2. 
   Incentivise firms to engage in contract farming activities.
   

Policy Issue 3:Improving equity financing of agriculture

Policy objective: Improved conditions and incentives for equity financing.

Policy statements: TheGovernment will:

1. 
   Promote joint agribusiness ventures between local and international entities;
   
2. 
   Facilitate the creation of a conducive regulatory environment for the development of rural savings organisations; and
   
3. 
   Promote rural savings clubs at community level.
   

7.8 INPUT SUPPLY

Policy Issue 1:Increasing input production

Policy objective: Timely availability of inputs.

Policy statements:The Government will:

1. 
   Promote and strengthen seed, agrochemicals and fertiliser producing entities; and
   
2. 
   Put in place special programmes and incentives for investors in input production.
   

Policy Issue 2: Decentralization of input distribution

Policy objective: An effective input supply system.

Policy statements: The Government will:

1. 
   Facilitate the development of an agro-dealer network;
   
2. 
   Facilitate investment in the development of agricultural input dealers in all farming areas;
   
3. 
   Promote the work of local input dealers by utilising them in input distribution schemes; and
   
4. 
   Promote the establishment of local input distribution co-operative unions.
   

7.9 AGRICULTURAL TRADE

Policy Issue 1:Creating an enabling trade environment

Policy objective: Improved trade in agricultural products.

Policy statements: The Government will:

1. 
   Maintain liberal export and foreign exchange policies;
   
2. 
   Simplify agricultural trade regulations;
   
3. 
   Leverage from available flights to promote high value agricultural exports; and
   
4. 
   Negotiate favourable bilateral and multilateral agricultural trade agreements.
   

Policy Issue 2:Building on Zimbabwe’s comparative advantages

Policy objective: Effectively utilise our comparative advantages.

Policy statements: The Government will:

1. 
   Promote and facilitate investment in the production, processing and marketing of quality export crops where we have comparative advantage;
   
2. 
   Collaborate with farmer groups and industrialists, to support and promote research of agricultural commodities that have potential to do well in Zimbabwe;
   
3. 
   Promote new market development; and
   
4. 
   Promote production of quality products.
   

Policy Issue 3:Taking advantage of regional and international trade agreements

Policy objective: Increased agricultural exports.

Policy statements: The Government will:

1. 
   Negotiate and ensure access of agricultural products to regional and international markets;
   
2. 
   Protect agricultural producersagainst unfair trade practices;
   
3. 
   Collaboratewith othercountries, to ensure that trade policies, rules and regulations in regional markets are harmonized; and
   
4. 
   Raise awareness on the opportunities inherent in bilateral, regional and multilateral trading systems.
   

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